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The Impact of International Economic Sanctions on Trade Empirical Evidence over the Period 1960-2000

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Author Info

  • Raul CARUSO

    (Universita' Cattolica di Milano)

Abstract

International economic sanctions are a recurring feature of political interactions. This paper provides, through a gravity model approach, an estimation of the impact of sanctions on international trade. The study reports panel estimates between the US and 49 target countries over the period 1960- 2000, inclusive. The results show that extensive sanctions have a large negative impact on bilateral trade, while this is not the case for limited and moderate sanctions. A second estimation focuses on the impact of unilateral US sanctions on bilateral trade between target countries and the other G-7 countries. The results show that unilateral extensive sanctions have also a large negative impact, while limited ones induce a slight positive effect on other G-7 countries trade. In the first case the hypothesis of negative ‘network effects’ is confirmed, while in the latter the sanctions-busting argument should be defended.

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File URL: http://riss.vitaepensiero.it/scheda-articolo_digital/raul-caruso/the-impact-of-international-economic-sanctions-on-trade-empirical-evidence-over-the-period-1960-2000-000518_2005_0001_0041-150808.html
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Bibliographic Info

Article provided by Vita e Pensiero, Pubblicazioni dell'Universita' Cattolica del Sacro Cuore in its journal Rivista Internazionale di Scienze Sociali.

Volume (Year): 113 (2005)
Issue (Month): 1 ()
Pages: 41-66

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Handle: RePEc:vep:journl:y:2005:v:113:i:1:p:41-66

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Related research

Keywords: International negative sanctions; international trade; gravity model;

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Cited by:
  1. Kubo, Koji, 2013. "Myanmar's non-resource export potential after the lifting of economic sanctions : a gravity model analysis," IDE Discussion Papers 426, Institute of Developing Economies, Japan External Trade Organization(JETRO).

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